Crude Oil Price Forecast 3rd Quarter 2020

Crude Oil Price Outlook 3Q – Charts to Review Amid 2nd Wave Risk

  • The WTI price action for the crude oil may face headwinds in the 3rd quarter 2020 as Covid-19 pandemic continues to affect the volatility of the market.
  • Crude oil prices climb about $75.0 because the initial month’s future contracts impress the record of $40.00/month in early April.
  • The crude oil technical overview is downgraded to the neutral head in the 2nd half of the year with a broad bearish downtrend downgrading the 4th quarter’s rally.
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The technical overview of crude oil prices has downgraded to neutral in the 4th quarter. The lesser optimistic forecast follows the upward trajectory upon staging the impressive rebound from the negative territory encountered this year.

The WTI prices of crude oil have begun wavering with the goods struggling to overcome the current $40.0 handle. As it is, the territory of technical resistance stands as a clear challenge that is highly underpinned by the early march gap lower, with the 78.6% Fibonacci retracement within the trading range and the existing 200-day MA.

crude oil price forecast

In case the crude oil selling pressure upgrades in the 3rd quarter 2020, nevertheless, the positively sloped the 50-day MA perched significantly the $25.0 price levels may offer some level of buoyancy. The oil price bears can make a significant push towards technical support in case there is a breakdown of the rising channel.

Moreover, there is a powerful potential for the flow and ebb of the market sentiments to impact the performance of these oil prices. In the same way, this WTI crude oil price action may mirror the volatility of the stock market as indicated by the S&P 500 VIX.

WTI Crude Oil Prices Forecast & Pressing Resistance

The crude oil market has done very little since Friday, USA’s independence day, which was a holiday in the US, and liquidity was at an all-time low.

The Texas intermediary crude oil market didn’t do much throughout the trading session last week, as the Globex Trading was the only thing that was offered. The US citizens have just celebrated Independence Day and so; most of the participants have been in the marketplace. Overall, we are currently sitting under the 200-day Moving Average and thus, there is a high likelihood that the level will continue after the resistance. Moreover, it is beyond the previous gap. As a result, it has some in-built resistance because of this. If it can break beyond the $42.50 level, then it is highly likely to start looking at $49 after this.

The Brent market hasn’t done anything over the trading session on Friday, 3rd July 2020. This was for the same reasons that this WTI remained the same. As of now, we are still in the middle of this gap that hasn’t yet been filled. As a result, it is highly likely that this Brent market will continue going higher reaching the $45 zone. Also, the 200-day Moving Average just sits there; this will offer some form of resistance.

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